Exterior Only Appraisal: Fill & Download for Free

To date, given President Trump’s stimulus (in most real estate markets, sales and refinances thrive. Rates are BELOW 2%! That is free money. Most recent Appraisals I have reviewed, houses sold in NC between 1 and 3 days. Property values are holding. The President required FNMA, FHLMC, and HUD to allow Appraisers to do exterior-only appraisals if deemed fit. That is a game changer and thwarts the junk that happened in 2008. I do not think Biden, through his dementia, even understands the concept. Vote Republican and we will be ok. Boots on the ground assessment.Cory

Assuming that by “PMI” you mean Private Mortgage Insurance as opposed to the mortgage insurance required on FHA loans, the process is simple. You simply have to demonstrate to the lender that your loan is 80% of your home’s value or less. Lenders have a variety of requirements for this proof. Some accept a computerized value assessment, called an Automated Valuation Model (AVM). Think Zillow on steroids. An AVM typically costs about $20.00. Other lenders require an appraisal with an exterior-only inspection, called a “drive-by” appraisal. This costs about $350.00. Some lenders require a full appraisal, which costs about $500.00.If you believe your property has appreciated enough—and a quick “Zestimate” from Zillow will give you a rough idea—you should contact your lender. Your monthly statement will give you the customer service number. They will tell you their requirements. You will have to pay for the appraisal ahead of time.Some lenders won’t consider removing PMI until you have had the loan for at least 12 months. Lenders also require that your loan be in good standing, with no late payments for the last 12 months.Private Mortgage insurance drops off automatically once the loan-to-value ratio (LTV) drops to 78% of the original value. For a 4% 30 year mortgage, this occurs in around 10 years.FHA mortgage insurance works differently. For loans originated between January 1, 2000 and June 3, 2013, mortgage insurance would drop off once the loan balance fell to 78% of the original purchase price, but no sooner than 5 years. This meant that a borrower with an FHA loan could make a payment after 5 years to reduce the loan balance to 78%. For a starting balance of $300,000, that would mean a principal payment of $37,000 at year 5.After June 3, 2013, borrowers will have to refinance into a conventional loan to drop the mortgage insurance, since FHA MI now remains with the loan for its entire term.

The appraisal process is a combination of science and opinion—but mostly science, even though the value that the appraiser delivers is called an “opinion of value” as of the effective date of the appraisal. Here’s how the process works:First, the appraiser describes the house being appraised (the “subject”) in a standardized way: living space in square feet, lot size, view, location, amenities, condition, etc. Then, the appraiser lists t least three other similar properties (comparable sales, or “comps”) that have sold recently, generally within six months. The comps should also be in close proximity to the subject.Next, the appraiser will describe the comps in the same standardized way he did the subject—except that he will use a combination of MLS data and public records. Then, he’ll apply dollar adjustments to make the comps the equivalent of the subject. If one of the comps is 200 square feet larger than the subject, for example, the appraiser will apply an adjustment based on the square footage. In the San Francisco Bay Area, where I work, that figure is likely to be between $40 and $150 per square foot, depending on the prices in the area. I’ll use $75 for this example. The appraiser would adjust the sales price of that comp downward by $15,000 (200 x $75). He’ll follow the same steps for other aspects of the property, such as condition, upgrades, pool or spa, view, etc. This will give an Adjusted Price for the comp. He’ll go through the same process for each of the comps.Then, the appraiser will put the comps in order, starting with the one the most like the subject. Then, he’ll calculate a weighted average of the comps to arrive at his “opinion of value.”It’s important to realize that only the properties that have actually sold will figure into the weighted average. Properties on the market will appear only to show the state of the market, not the price of properties.To complete the report, the appraiser will write a narrative report describing the condition of the property and in general explaining how he arrived at the opinion he did. He will also provide inside and exterior photos of the subject and its neighborhood, along with exterior photos of the comps.It’s important to realize that a messy home will appraise for the same amount as it would in model home order. It’s also important to keep in mind that ultra-premium carpeting and drapes are unlikely to make a significant difference it its appraised value—even though fancy-schmantzy decorating could ultimately bring a higher sales price.Hope this is useful.